Apr
17
2019
--

Google Cloud brings on 27-year SAP veteran as it doubles down on enterprise adoption

Thomas Kurian, the newly minted CEO of Google Cloud, used the company’s Cloud Next conference last week to lay out his vision for the future of Google’s cloud computing platform. That vision involves, in part, a hiring spree to give businesses that want to work with Google more people to talk to and get help from. Unsurprisingly, Kurian is also looking to put his stamp on the executive team, too, and today announced that former SAP executive Robert Enslin is joining Google Cloud as its new president of Global Customer Operations.

Enslin’s hire is another clear signal that Kurian is focused on enterprise customers. Enslin, after all, is a veteran of the enterprise business, with 27 years at SAP, where he served on the company’s executive board until he announced his resignation from the company earlier this month. After leading various parts of SAP, including as president of its cloud product portfolio, president of SAP North America and CEO of SAP Japan, Enslin announced that he had “a few more aspirations to fulfill.” Those aspirations, we now know, include helping Google Cloud expand its lineup of enterprise customers.

“Rob brings great international experience to his role having worked in South Africa, Europe, Asia and the United States—this global perspective will be invaluable as we expand Google Cloud into established industries and growth markets around the world,” Kurian writes in today’s announcement.

For the last two years, Google Cloud already had a president of Global Customer Operations, though, in the form of Paul-Henri Ferrand, a former Dell exec who was brought on by Google Cloud’s former CEO Diane Greene . Kurian says that Ferrand “has decided to take on a new challenge within Google.”

Apr
14
2019
--

Diving into Google Cloud Next and the future of the cloud ecosystem

Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Frederic Lardinois and Ron Miller offered up their analysis on the major announcements that came out of Google’s Cloud Next conference this past week, as well as their opinions on the outlook for the company going forward.

Google Cloud announced a series of products, packages and services that it believes will improve the company’s competitive position and differentiate itself from AWS and other peers. Frederic and Ron discuss all of Google’s most promising announcements, including its product for managing hybrid clouds, its new end-to-end AI platform, as well as the company’s heightened effort to improve customer service, communication, and ease-of-use.

“They have all of these AI and machine learning technologies, they have serverless technologies, they have containerization technologies — they have this whole range of technologies.

But it’s very difficult for the average company to take these technologies and know what to do with them, or to have the staff and the expertise to be able to make good use of them. So, the more they do things like this where they package them into products and make them much more accessible to the enterprise at large, the more successful that’s likely going to be because people can see how they can use these.

…Google does have thousands of engineers, and they have very smart people, but not every company does, and that’s the whole idea of the cloud. The cloud is supposed to take this stuff, put it together in such a way that you don’t have to be Google, or you don’t have to be Facebook, you don’t have to be Amazon, and you can take the same technology and put it to use in your company”

Image via Bryce Durbin / TechCrunch

Frederic and Ron dive deeper into how the new offerings may impact Google’s market share in the cloud ecosystem and which verticals represent the best opportunity for Google to win. The two also dig into the future of open source in cloud and how they see customer use cases for cloud infrastructure evolving.

For access to the full transcription and the call audio, and for the opportunity to participate in future conference calls, become a member of Extra Crunch. Learn more and try it for free. 

Apr
05
2019
--

Peter Kraus dishes on the market

During my recent conversation with Peter Kraus, which was supposed to be focused on Aperture and its launch of the Aperture New World Opportunities Fund, I couldn’t help veering off into tangents about the market in general. Below is Kraus’ take on the availability of alpha generation, the Fed, inflation versus Amazon, housing, the cross-ownership of U.S. equities by a few huge funds and high-frequency trading.

Gregg Schoenberg: Will alpha be more available over the next five years than it has been over the last five?

To think that at some point equities won’t become more volatile and decline 20% to 30%… I think it’s crazy.

Peter Kraus: Do I think it’s more available in the next five years than it was in the last five years? No. Do I think people will pay more attention to it? Yes, because when markets are up to 30 percent, if you get another five, it doesn’t matter. When markets are down 30 percent and I save you five by being 25 percent down, you care.

GS: Is the Fed’s next move up or down?

PK: I think the Fed does zero, nothing. In terms of its next interest rate move, in my judgment, there’s a higher probability that it’s down versus up.

Apr
01
2019
--

German LinkedIn rival Xing is rebranding as ‘New Work,’ acquires recruitment platform Honeypot for up to $64M

Xing, the business networking platform that has been described as Germany’s answer to LinkedIn, has made an acquisition to beef up its recruitment business ahead of a rebrand of the business as “New Work.” The company has acquired Honeypot, a German startup that has built a job-hunting platform for tech people, for up to €57 million ($64 million). Xing tells us that Honeypot is its biggest acquisition to date.

The figure includes the acquisition (€22 million) plus a potential earn-out of up to €35 million if certain targets are met in the next three years.

Xing said that it plans to rebrand as New Work in the second half of 2019, bringing together a number of other assets it has acquired and built over the years.

“This acquisition is an excellent addition to our New Work portfolio,” Thomas Vollmoeller, CEO at Xing, said in a statement. “Honeypot focuses on candidates by helping them to find a job matching their individual preferences… With subsidiaries and brands such as kununu and HalloFreelancer, Xing is far more than just a single network. New Work is the umbrella spanning all our business activities.” Xing said that all the smaller companies will keep their branding.

Xing already offered job listings as part of its platform, with 20,000 businesses as customers; but Honeypot will add a few different things to the mix.

First, it will give Xing more traction specifically in the tech vertical, since Honeypot first started out in 2015 targeting developers although it later expanded to other tech jobs.

Second, Honeypot’s structure is a natural fit for a social recuitment platform: as with a lot of social recruiting, Honeypot lets recruiters use platforms, profile pages and social graphics to find and approach candidates, rather than candidates reaching out in response to specific opportunities.

Honeypot adds additional features to help make this process more accurate and less of a waste of time on both sides. Those doing the recruiting have to provide specific details around salary and, say, programming languages required, as part of their outreach. On the other side, individuals go through a “brief expertise check” to vet them, and they too have to be a bit more specific on what they can and what they want to do, and what they want to earn, to help weed out opportunities that might not be suitable.

Third, the acquisition will help Xing make a bigger push into building its profile outside of Germany into more of Europe, as New Work.

This is no small thing. Xing years ago was considered a would-be rival to LinkedIn. But — and this was perhaps even more true in the past, and Xing was founded in 2003 — scaling startups to be global players out of Europe can be a challenge, even more so when there is a formidable direct competitor growing quickly as well.

In the end, Xing developed as a much more modest operation, relatively speaking. While LinkedIn today has some 600 million users and was acquired by Microsoft in 2016 for $26.2 billion, Xing is publicly traded and currently valued at around $2 billion (€1.81 billion), with some 15 million members.

Xing says that today Honeypot’s current emphasis is German-speaking countries and the Netherlands, which together cover some of the biggest startup hubs in Europe, including Berlin and Amsterdam.

The company is still relatively small but growing, adding 1,000 IT specialists to its books each week, with some 100,000 individuals and 1,500 businesses currently registered. Xing said that it will be investing in the company to expand to more markets in Europe, as well as to grow its business by tapping Xing’s own customer base.

Although there have been some notable exceptions like payments startup Adyen from the Netherlands, Farfetch from the UK and Spotify (originally from Stockholm, grown in London and now increasingly a US company), scaling startups in Europe has proven to be challenging.

One of the big reasons why has to do with a shortage of talent to build these companies: in Germany alone — home to the buzzy startup city of Berlin — there are 82,000 unfilled tech jobs. In other words, there is an opportunity for more user-friendly platforms to help connect those dots.

XING and Honeypot both have the vision of helping people to further their career. We want Honeypot to offer the world’s largest work-life community for IT specialists by giving candidates the power to decide on their next career step,” said Kaya Taner, CEO who founded Honeypot with Emma Tracey. “We will continue to pursue this vision with XING. Going forward, around 100,000 IT specialists from all over the world who are registered on Honeypot will be able to connect with the many first-rate employers in German-speaking countries. This will enable Honeypot to continue developing its domestic market, while also further expanding its international community.”

Mar
27
2019
--

Goodly replaces lame office perks with student loan repayment

There are better employee perks than a ping-pong table. Seventy percent of Americans graduate college with student loan debt. That’s 45 million people who owe $1.6 trillion. So when employers use Goodly to offer $100 per month in student loan payback for a $6 fee, talent sticks around. The startup found 86 percent of employees said they’d stay with a company for at least five years if their employer helped pay down their student loans. Yet employers break even if workers stay just two extra months, and get a 5X return if they stay an extra year because it costs so much to hire and train replacement staff.

Now, Y Combinator-backed Goodly has raised a $1.3 million seed round led by Norwest. The startup hopes to capitalize on corporate America waking up to student loan payback as a benefit, which is expected to grow from being offered by 4 percent of companies today to 32 percent by 2021.

Goodly co-founder and CEO Greg Poulin knows the student loan crisis personally. “When I was in school, my father passed away very unexpectedly due to a heart attack. I had to borrow $80,000 for college at Dartmouth,” he tells me. His monthly payment is now $900. The stress that debt creates can poison the rest of your life. He says 21 percent of employees with student loan debt have delayed marriage, 28 percent have put off starting a family and 1 out of 8 divorces is now directly attributed to student loan debt. “I’ve seen first-hand how challenging it is for employees to save for retirement or start a family” when they’re strapped with debt, Poulin says.

He met his co-founder and CTO Hemant Verma when they started working at Zenefits’ founder Parker Conrad’s new employee onboarding startup, Rippling, in 2017. That taught them how simplifying the benefits sign-up process could become its own business. Typically it requires that benefits be integrated with a company’s financial software, like payroll, and be set up with proper provisioning access. It’s enough of a chore that companies don’t go to the trouble of offering student loan repayment.

Poulin and Verma started Goodly to create a “set it and forget it” system that automates everything. They charge $6 per month per participating employee and typically see adoption by 30 percent to 40 percent of employees. Rather than help with their monthly payment that includes interest, Goodly clients pay down their employees’ core debt so they can escape more quickly. Employees get a dashboard where they can track their debt and all of the contributions their company has made. Goodly hasn’t had a single customer churn since launch, demonstrating how badly employers want to keep job-hopping talent in their roles.

“We found that our people put off contributing to their 401ks and buying a house because of their student loan debt. We thought that offering a Student Loan Repayment Benefit would be a great low-cost and high-impact benefit to attract and retain talent while alleviating some of the stress and the financial burden on our employees,” says Kim Alessi, an HR generalist.

Goodly’s founders and first employees

The business opportunity here is relatively young, but there are a few competitors. Boston-based Gratify was acquired by First Republic, which Santa Monica’s Tuition.io pivoted to offering student loan benefits. But Goodly’s connection to so many potential clients plus its new funding could help it make student loan repayment a ubiquitous perk. Along with Norwest and YC, the funding comes from ACE & Company, Arab Angel, Zeno Ventures and angel investors, including Optimizely’s Pete Koomen, DreamHost’s Josh Jones, ShipStation’s Jason Hodges, Fairy’s Avlok Kohli and Telly’s Mo Al Adham.

Beyond improving talent retention, Goodly may also help erase some of the systematic discrimination against minorities in our country. Women hold 66 percent of all student loan debt, black and Latinx Americans have 31 percent more student debt than their peers and LGBTQ borrowers owe $16,000 more than an average member of the population. Convincing employers to address student loan debt could give everyone more freedom of choice when it comes to what they work on and how they live their lives.

Feb
12
2019
--

Google takes Hire, its G Suite recruitment platform, to its first global markets, UK and Canada

The recruitment market is big business — worth some $554 billion annually according to the most recent report from the World Employment Confederation. In the tech world, that translates into a big opportunity to build tools to make a recruiter’s work easier, faster and more likely of success in finding the right people for the job. Now Google is stepping up its own efforts in the space: today it is expanding Hire, its G Suite-based recruitment management platform, to the UK and Canada, its first international markets outside the US.

Google is a somewhat late entrant into the market, launching Hire only in 2017 with the basic ability to use apps like Gmail, Calendar, Spreadsheets and Google Voice to help people manage and track candidates through the recruiting process and doing so by integrating with third-party job boards. In the interim, it has supercharged the service with bells and whistles that draw on the company’s formidable IP in areas like AI and search.

These tools provide robotic process automation-style aids to take away some of the more repetitive tasks around admin.

“Recruiters want time to talk to candidates but they don’t want to sit in systems clicking things,” said Dmitri Krakovsky, the VP leads Hire for Google. “We give time back by automating a lot of functionality.” They also sift out needles in haystacks of applicants and surface interesting “lookalikes” who didn’t quite make the cut (or take the job) so that they can be targeted for future opportunities.

And — naturally — while Hire links up with third-party job boards via services like eQuest to bring inbound people into the system, it also provides seamless integration with Jobs by Google, Google’s own vertical search effort that is taking on the traditional job board by letting people look for opportunities with natural language queries in Google’s basic search window

Krakovsky said that the first international launches in Canada and the UK made sense because of the lack of language barrier between them and the US. The UK was key for another reason, too: it gave Google the chance to tweak the product to comply with GDPR, he said, for future launches.

While markets like the UK and US represent some of the very biggest for recruitment services globally, it’s a long tail opportunity, and over time, the ambition will be to take Hire global, positioning it as a key rival against the likes of Taleo, LinkedIn, Jobvite, Zoho, SmartRecruiter and many others in the area of applicant sourcing and tracking.

Currently, Hire ranks only at number 23 among the top 100 applicant tracking systems globally, according to research from OnGig, but it also singles it out for its potential because it is, after all, Google. For now, Krakovsky said it’s not taking on large enterprises or even tiny mom-and-pop shops, but the very large opportunity of between 10 and a couple of thousand employees.

The bigger opportunity for Google is on a couple of levels. First, it sells Hire as a paid product that helps bolster the company’s wider offering of Google Cloud Platform software and services. These prices range from $100/month to $400/month depending on company size (and you work directly with Google on pricing if your organization is over 100 employees). Second, it bolsters the company’s wider ambitions in recruitment, which also include the API-based Cloud Talent Solutions and its vertical search job boards. It’s a quiet but huge strategy, considering the size of the market that is being tackled.

Google’s supercharging of Hire with AI and taking it international highlights another point. One of the biggest meta-trends in recruitment has been a push to try to hire with more diversity in mind, not just to bring fairness to the process, but to infuse businesses with different ways of thinking and catering to different audiences.

While AI is something that can definitely speed up certain processes, it has also been shown to be a potential cesspool of bias based on what is fed into it. One particularly messy example of that, in fact, came from an attempt by Amazon to build an AI-based recruitment tool, which it eventually had to shut down.

Google is well aware of that and has been keeping it in mind when building and expanding Hire particularly to new territories, which in themselves are exercises in handling diversity for AI systems.

Krakovsky noted that one example of how Google has been building more “understanding” AI is in its searches for veterans, who can look for jobs using their own jargon for expertise, which automatically gets translated into other skills in the way they might be described by employers outside the military.

That’s for sourcing jobs, of course. The key for the tech world, if it wants to build products that will have international staying power to upset the existing “hire”archy (sorry), will be to bring that kind of levelling to every aspect of the recruiting process over time.

Those at the top are not sitting back, either: just yesterday Jobvite (ranked fifth largest ATS tracking platform) announced a funding round of $200 million and three acquisitions.

Jan
17
2019
--

On-demand workspace platform Breather taps new CEO

Breather’s new CEO Bryan Murphy / Breather Press Kit

Breather, the platform that provides on-demand private workspace, announced today that it has appointed Bryan Murphy as its new CEO.

Before joining Breather, Murphy was the founder and president of direct-to-consumer mattress startup, Tomorrow Sleep. Prior to Tomorrow Sleep, Murphy held posts as an advisor to investment firms and as an executive at eBay after the company acquired his previous company, WHI Solutions — an e-commerce platform for aftermarket auto parts — where Murphy was the co-founder and CEO.

Breather believes Murphy’s extensive background scaling e-commerce and SaaS platforms, as well as his experience working with incumbents across a number of traditional industries, can help it execute through its next stage of global growth.

Murphy is filling the vacancy left by co-founder and former CEO Julien Smith, who stepped down as chief executive this past September, just three months after the company completed its $45 million Series C round, which was led by Menlo Ventures and saw participation from RRE Ventures, Temasek Holdings, Ascendas-Singbridge and Caisse de Depot et Placement du Quebec.

In a past statement on his transition, Smith said: “As I reflect on my strengths and consider what it will take for the company to reach its full potential, I realize bringing on an executive with experience scaling a company through the next level of growth is the best thing for the business.”

Smith, who remains with the company as chairman of the board, believes Murphy more than fits the bill. “Bryan’s record of scaling brands in competitive markets makes him an ideal leader to support this momentum, and I’m excited to see where he takes us next,” Smith said.

In a conversation with TechCrunch, Murphy explained that Breather’s next growth phase will ultimately come down to its ability to continue the global expansion of its network of locations and partner landlords while striking the optimal balance between rental economics and employee utility, productivity and performance. With new spaces and ramped marketing efforts, Murphy and the company expect 2019 to be a big year for Breather — “I think this year, you’re going to start hearing a lot about Breather and it really being in a leadership role for the industry.”

Breather’s workspace at 900 Broadway in New York City is one of 500+ network locations accessible to users.

On Breather’s platform, users are currently able to access a network of more than 500 private workspaces across 10 major cities around the world, which can be booked as meeting space or short-term private office space.

Meeting spaces can be reserved for as little as two hours, while office space can be booked on a month-to-month basis, providing businesses with financial flexibility, private and more spacious alternatives to co-working options, and the ability to easily change offices as they grow. For landlords, Breather allows property owners to generate value from underutilized space by providing a turnkey digital booking system, as well as expertise in the short-term rental space.

Murphy explained to TechCrunch that part of what excited him most about his new role was his belief in Breather’s significant product-market fit and the immense addressable market that he sees for flexible workspaces longer-term. With limited penetration to date, Murphy feels the commercial office space industry is in just the third inning of significant transformation. 

Murphy believes that long-term growth for Breather and other flexible space providers will be driven by a heightened focus on employee flexibility and wellness, a growing number of currently underserved companies whose needs fall between co-working and traditional direct leasing, and the need for landlords to support a wider variety of office space options as workforce demographics and behaviors shift. 

Murphy believes that the ease, flexibility and unlocked value Breather provides puts the platform in a great position to win market share.

“Breather has built a remarkable commercial real estate e-commerce and services platform that offers one-click access to over 500 workspaces around the world,” said Murphy in a press release. “To our customers, having access to workspace that is turnkey, affordable, beautiful, productive and that can flex up and down based on needs is a total game changer.”

To date, Breather has served more than 500,000 customers and has raised more than $120 million in investment.

Jan
15
2019
--

Box hires former SAP exec as chief information security officer

Box announced today that it has hired Lakshmi Hanspal to be the company’s new chief information security officer (CISO). She boasts 20 years of security experience, including holding executive security roles at SAP Ariba and Bank of America. She also spent time in a senior role at PayPal.

In a blog post announcing the hire, the company defined her role this way: “In the role of CISO, Lakshmi will be responsible for Box’s cyber security practice, security operations and data and platform protection.”

Hanspal sees similarities in Box from her time at SAP Ariba, but she recognizes that she will face a different set of challenges. “My role at Box is similar to what I focused on at SAP Ariba with the biggest difference being Box’s geographical footprint. Box is a born in the cloud company and expanding rapidly globally, so my focus will also include securing public cloud operations (future stack) and risk transparency for our customers,” she told TechCrunch.

She said that will involve improving service maturity and sustainability through automation, while continuing to ensure the highest level of security of both Box corporate and product platforms.

Box CEO Aaron Levie indicated that security is central to everything Box does, so finding the right chief information security officer was absolutely critical. “Not only does Lakshmi bring with her an impressive and diverse leadership experience from her time at SAP, PayPal and Bank of America, but she’s an incredible team builder and culture add for Box that will take our security team to the next level,” Levie said.

Hanspal is the third woman on Box’s executive team, joining Stephanie Carullo, who was hired as chief operating officer in 2017 and chief people officer, Christie Lake.

Oct
10
2018
--

Shasta Ventures is doubling down on security startups with 3 new hires

Early-stage venture capital firm Shasta Ventures has brought on three new faces to beef up its enterprise software and security portfolio amid a big push to “go deeper” into cybersecurity, per Shasta’s managing director Doug Pepper.

Balaji Yelamanchili (above left), the former general manager and executive vice president of Symantec’s enterprise security business unit, joins as a venture partner on the firm’s enterprise software team. He was previously a senior vice president at Oracle and Dell EMC. Pepper says Yelamanchili will be sourcing investments and may take board seats in “certain cases.”

The firm has also tapped Salesforce’s former chief information security officer Izak Mutlu (above center) as an executive-in-residence, a role in which he’ll advise Shasta portfolio companies. Mutlu spent 11 years at the cloud computing company managing IT security and compliance.

InterWest board partner Drew Harman, the final new hire, has joined as a board partner and will work closely with the chief executive officers of Shasta’s startups. Harman has worked in enterprise software for 25 years across a number of roles. He is currently on the boards of the cloud-based monetization platform Aria, enterprise content marketing startup NewsCred, customer retention software provider Totango and others.

There’s no area today that’s more important than cybersecurity,” Pepper told TechCrunch. “The business of venture has gotten increasingly competitive and it demands more focus than ever before. We aren’t looking for generalists, we are looking for domain experts.”

Shasta’s security investments include email authentication service Valimail, which raised a $25 million Series B in May. Airspace Systems, a startup that built “kinetic capture” technologies that can identify offending unmanned aircrafts and take them down, raised a $20 million round with participation from Shasta in March. And four-year-old Stealth Security, a startup that defends companies from automated bot attacks, secured an $8 million investment from Shasta in February.

The Menlo Park-based firm filed to raise $300 million for its fifth flagship VC fund in 2016. A year later, it announced a specialty vehicle geared toward augmented and virtual reality app development. With more than $1 billion under management, the firm also backs consumer, IoT, robotics and space-tech companies across the U.S.

In the last year, Shasta has promoted Nikhil Basu Trivedi, Nitin Chopra and Jacob Mullins from associate to partner, as well as added two new associates, Natalie Sandman and Rachel Star.

Oct
10
2018
--

Zenefits’ Parker Conrad returns with Rippling to kill HR & IT busywork

Parker Conrad likes to save time, even though it’s gotten him in trouble. The former CEO of Zenefits was pushed out of the $4.5 billion human resources startup because he built a hack that let him and employees get faster insurance certifications. But 2.5 years later, he’s back to take the busy work out of staff onboarding as well as clumsy IT services like single sign-on to enterprise apps. Today his startup Rippling launches its combined employee management system, which Conrad calls a much larger endeavor than the minimum viable product it announced while in Y Combinator’s accelerator 18 months ago.

“It’s not an HR system. It’s a level below that,” Conrad tells me. “It’s this unholy, crazy mashup of three different things.” First, it handles payroll, benefits, taxes and PTO across all 50 states. “Except Syria and North Korea, you can pay anyone in the world with Rippling,” Conrad claims. That makes it a competitor with Gusto… and Zenefits.

Second, it’s a replacement for Okta, Duo and other enterprise single-sign on security apps that authenticate staffers across partnered apps. Rippling bookmarklets make it easy to auth into over 250 workplace apps, like Gmail, Slack, Dropbox, Asana, Trello, AWS, Salesforce, GitHub and more. When an employee is hired or changes teams, a single modification to their role in Rippling automatically changes all the permissions of what they can access.

And third, it handles computer endpoint security like Jamf. When an employee is hired, Rippling can instantly ship them a computer with all the right software installed and the hard drive encrypted, or have staffers add the Rippling agent that enforces the company’s security standards. The system is designed so there’s no need for an expert IT department to manage it.

“Distributed, fragmented systems of record for employee data are secretly the cause of almost all the annoying administrative work of running a company,” Conrad explains. “If you could build this system that ties all of it together, you could eliminate all this crap work.” That’s Rippling. It’s opening up to all potential clients today, charging them a combined subscription or à la carte fees for any of the three wings of the product.

Conrad refused to say how much Rippling has raised total, citing the enhanced scrutiny Zenefits’ raises drew. But he says a Wall Street Journal report that Rippling had raised $7 million was inaccurate. “We haven’t raised any priced VC rounds. Just a bunch of seed money. We raised from Initialized Capital, almost all the early seed investors at Zenefits and a lot of individuals.” He cited Y Combinator, YC Growth Fund, YC’s founder Jessica Livingston and president Sam Altman, other YC partners, as well as DFJ and SV Angel.

“Because we were able to raise a bunch of money and court great engineers . . . we were able to spend a lot of time building this fundamental technology,” Conrad tells me. Rippling has about 50 team members now, with about 40 of them being engineers, highlighting just how thoroughly Conrad wants to eradicate manual work about work, starting with his own startup.

The CEO refused to discuss details of exactly what went down at Zenefits and whether he thought his ejection was fair. He was accused of allowing Zenefits’ insurance brokers to sell in states where they weren’t licensed, and giving some employees a macro that let them more quickly pass the online insurance certification exam. Conrad ended up paying about $534,000 in SEC fines. Zenefits laid off 430 employees, or 45 percent of its staff, and moved to selling software to small-to-medium sized businesses through a network of insurance brokers.

But when asked what he’d learned from Zenefits, Conrad looked past those troubles and instead recalled that “one of the mistakes that we made was that we did a lot stuff manually behind the scenes. When you scale up, there are these manual processes, and it’s really hard to come back later when it’s a big hard complicated thing and replace it with technology. You get upside down on margins. If you start at the beginning and never let the manual processes creep in . . . it sort of works.”

Perhaps it was trying to cut corners that got Conrad into the Zenefits mess, but now that same intention has inspired Rippling’s goal of eliminating HR and IT drudgery with an all-in-one tool.

“I think I’m someone who feels the pain of that kind of stuff particularly strongly. So that’s always been a real irritant to me, and I saw this problem. The conventional wisdom is ‘don’t build something like this, start with something much smaller,’ ” Conrad concludes. “But I knew if I didn’t do this, that no one else was gong to do it and I really wanted this system to exist. This is a company that’s all about annoying stuff and making that fucking annoying stuff go away.”

Powered by WordPress | Theme: Aeros 2.0 by TheBuckmaker.com